Car Loan EMI Calculator
Enter vehicle ex-showroom price plus road tax and insurance for the on-road price. Enter your down payment and loan terms.
How your auto loan payment is calculated
The financed amount is the vehicle price minus your down payment and trade-in value, plus any sales tax rolled into the loan. The monthly payment uses the standard annuity formula, spreading equal payments across the term. Each payment covers that month's interest on the outstanding balance, with the rest reducing principal. The amortisation chart shows how the balance falls over time.
What this doesn't include
This calculator covers the loan only. Your true monthly cost of ownership will also include car insurance, fuel, maintenance and servicing, road tax or registration fees, and possibly GAP insurance if your lender requires it. GAP insurance covers the difference between what you owe and what the car is worth if it is written off or stolen - particularly relevant if you have a small or zero deposit.
Why your dealer's figures may look different
Dealer finance quotes sometimes bundle optional products - extended warranties, GAP insurance, paint protection - into the monthly payment without itemising them. They may also quote a flat rate (common in some markets) rather than the effective APR. Flat rates make loans look cheaper than they are. Always ask for the total amount payable and the APR before agreeing to finance.
Frequently asked questions
What is APR on a car loan and why does it differ from the interest rate?
APR (Annual Percentage Rate) is the total cost of the loan expressed as an annual rate, including the interest rate and any mandatory fees such as origination or documentation fees. If there are no fees, APR equals the interest rate. Adding a documentation fee increases the APR even if the stated interest rate stays the same - which is why comparing APR across lenders is more informative than comparing headline rates.
How does a trade-in reduce my monthly payment?
Your trade-in value is credited against the purchase price before calculating the financed amount. If you buy a $35,000 car with a $5,000 trade-in, you finance $30,000 before the down payment. This directly reduces the loan principal, monthly payment, and total interest paid. Some dealers inflate the trade-in value and raise the selling price - check both figures independently.
How much should I put down on a car?
A down payment of at least 10–20% is generally recommended. This keeps your monthly payment manageable and reduces the risk of going "upside down" (owing more than the car is worth) early in the loan term. Cars depreciate quickly - a new car loses roughly 20% of its value in the first year. A small or zero down payment can leave you owing more than the car is worth for the first 1–2 years.
Should I take a longer loan term to get a lower monthly payment?
Longer terms (72–84 months) lower the monthly payment but significantly increase total interest paid and the risk of negative equity. At 7% interest, a $30,000 loan over 48 months costs roughly $1,700 in total interest; over 72 months it costs roughly $2,600. If you need a lower payment, a larger down payment is preferable to extending the term.
What does the documentation fee do to my APR?
The doc fee is a fixed charge added to the financed amount. On a small loan over a short term, it can meaningfully raise the effective APR. A $500 doc fee on a $15,000 loan over 36 months adds roughly 0.4% to the effective APR. Add it in the optional field above to see your true cost of borrowing.
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The repayment engines behind this site are tested against worked examples published by FRED, the Bank of Canada, the Bank of England and the Reserve Bank of Australia. Found an error? Contact us